System and method for activating telephone-based payment instrument

ABSTRACT

A payment instrument in the form of a cell phone is loaded with account information and activated as a payment instrument by reading account information from a nearby RFID device, and entering a user PIN or password. In one embodiment, the account information is read from an RFID tag provided to the user, and the password is entered on the phone keypad. In a second embodiment, the account information is read from an RFID device at an ATM or kiosk after the user inserts a card into a card reader at the ATM or kiosk and enters the password at the ATM or kiosk keypad.

CROSS-REFERENCES TO RELATED APPLICATIONS

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STATEMENT AS TO RIGHTS TO INVENTIONS MADE UNDER FEDERALLY SPONSOREDRESEARCH OR DEVELOPMENT

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REFERENCE TO A “SEQUENCE LISTING,” A TABLE, OR A COMPUTER PROGRAMLISTING APPENDIX SUBMITTED ON A COMPACT DISK.

NOT APPLICABLE

BACKGROUND OF THE INVENTION

Smart cards are used for conducting transactions, such as purchases at aretail locations, financial transactions at ATMs, fees at toll road paybooths, and the like. Some smart cards have contact-less interfaces andemploy a variety of wireless technologies, including Bluetooth,infrared, and radio frequency such as RFID (radio frequencyidentification) technology. One form of RFID technology that has beenrecently used in smart cards is Near Field Communications (NFC), whichpermits exchange of data between an RFID device or “tag” and an RFIDreader, when the tag and reader are touched or brought within severalinches of each other. RFID devices employing NFC technology operate at aradio frequency range of 13.56 MHz, use very small amounts of power, andcomply with published standards, including ISO (International StandardsOrganization) 18092, ISO 21481, ECMA (formerly European ComputerManufacturers Association) 340, 352 and 356, and ETSI (EuropeanTelecommunications Standards Institute) TS 102 190. When incorporatedinto contact-less smart cards, they are also compatible withcommercially available smart card infrastructure based on ISO/IEC 14443,which includes devices and technology such as the Phillips MIFARE® smartcard technology and the Sony® FeliCa Card.

Such technology has also been placed in wireless telephones, PDA's andsimilar devices, which can be used as payment instruments in lieu ofcard-like structures. This eliminates the need for a consumer to carry aseparate smart card. Thus, the account data (for one or more cardaccounts) may be stored in and used from a single wireless device (e.g.,cell phone) that is carried by the consumer.

Cell phones that employ RFID devices and that may be used as paymentinstruments have recently become available, such as the Nokia 3220 cellphone, which is described in the Nokia Press Release, “Nokia Unveils theWorld's first NFC product—Nokia NFC Shell for Nokia 3220 Phone,” datedNov. 2, 2004 (available at www.press.nokia.com), Harris, C., Nokia'sFirst NFC Product—Why It's Important, dated Nov. 4, 2004 (available atwww.digital-lifestyles.info), and O'Connor, M., RFID Phone PaymentSystems Good to Go, dated Apr. 25, 2005 (available at RFIDjournal.com).

Once loaded with the proper account information, a cell phone that isenabled as a payment instrument works like any other contact-less smartcard. However, there are a limited number of methods used to initiallyload the necessary account information into the cell phone, and suchmethods are often not convenient for the consumer and are prone toprivacy and security issues. For example, one method is providing aphone (or a “shell” or cover for a phone) to the consumer with theaccount information preloaded, and the customer thus needs to replacethe cell phone (or cover) if there should be a change in smart cardaccounts. Another method of loading account information is to requirethe phone be taken to a specific, secure location where the phone can beconnected to a terminal by a representative of the card issuer, and theaccount information downloaded (e.g., through a physical adaptor orthrough cabling). Neither of these approaches provide flexibility for acustomer to have an account added (or changed) when the customer alreadyhas possession of a phone with RFID or similar functionality.

BRIEF SUMMARY OF THE INVENTION

Embodiments of the present invention provide methods and systems foractivating a payment instrument (in the form of a mobile device, such asa telephone) by reading account information (an account identifier) froman external wireless device, loading the information into the phone, andentering an authentication code (such as a PIN), password, or biometricvector.

In some embodiments, activation is accomplished by loading accountinformation into the telephone using an RFID device within the telephoneand an external RFID device, and using the keypad of the telephone or akeypad of a self-service terminal (e.g., ATM) to enter the password.

In one embodiment, a method is provided for activating a paymentinstrument in the form of a mobile device, where the mobile deviceemploys telecommunications signaling and has a payment instrument modulethat employs separate wireless signaling for storing and transmitting anaccount identifier. The method includes associating a personalidentifier with the account identifier and providing that personalidentifier to a user (cardholder) prior to activation of the paymentinstrument, placing the mobile device in proximity to an externalwireless device, transmitting an account identifier from the externalwireless device to the payment instrument module, requesting a personalidentifier be provided by the user, and activating the paymentinstrument to use the transmitted account identifier if the requestedpersonal identifier provided by the user matches the personal identifierassociated with the account identifier.

A more complete understanding of the present invention may be derived byreferring to the detailed description of the invention and to theclaims, when considered in connection with the Figures.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates a telephone-based payment instrument that may beactivated in accordance with embodiments of the present invention.

FIG. 2 illustrates one embodiment of a system for activating atelephone-based payment instrument, using an RFID tag and a PIN(personal identification number) that have both been mailed to theconsumer.

FIG. 3 illustrates an alternative embodiment, using an ATM foractivating a telephone-based payment instrument.

FIGS. 4A and 4B are flow diagrams illustrating an activation processused in connection with the system of FIG. 2.

FIGS. 5A and 5B are flow diagrams illustrating an activation processused in connection with the system of FIG. 3.

FIG. 6 is a flow diagram illustrating program steps carried out by thepayment instrument module in activating the telephone-based paymentinstrument.

DETAILED DESCRIPTION OF THE INVENTION

There are various embodiments and configurations for activating paymentinstruments pursuant to the present invention. Further, paymentinstruments to be activated may take a number of different forms, one ofwhich is shown in FIG. 1 as a mobile device or cell phone 102. The phone102 functions both as a user communications device (for making telephonecalls, and if web enabled, for sending emails, accessing internetwebsites, etc.), and also as a contact-less smart card, enabling theuser to conduct transactions at POS (point-of-sale) terminals, ATMs,toll booths, and many other locations where financial transactions areconducted.

Wireless phones that serve as payment instruments are known, anddescriptions can be found, for example, in U.S. Patent ApplicationPublication No. 2004/0030601, filed by Russell L. Pond et al., which ishereby incorporated by reference.

As conventional, the phone 102 includes a keypad or keyboard 104 and adisplay 106. It also includes a payment instrument module (to bedescribed later) that provides contact-less smart card (RFID)functionality to the phone so that the phone may be used as a paymentinstrument. Briefly, RFID features permit the presence of the phone tobe detected when in proximity to an RFID reader at locations wheretransactions are to be made (e.g., a retail POS system). The cell phonesends account information (stored in the phone) using short range radiosignaling in response to a request from the reader (the short rangesignaling complies with NFC protocols and standards as describedearlier, and is separate from the wireless telecommunications signalingthat the phone might otherwise use for normal voice and datacommunications). The account information and the transaction to beconducted may be verified by entering a user PIN, e.g., at the keyboard104. Depending on the particular application and configuration, thedisplay 106 of the phone may provide instructions to lead theuser/customer through the transaction. Further details of exemplary usesfor and configurations of the payment instrument/phone 102 can be foundin previously referenced U.S. Patent Application Publication No.2004/0030601.

While not shown in FIG. 1, but as conventional, the phone 102 has amaster control unit (MCU) or processor that may be programmed to controlthe overall operation of the phone.

The functionality that enables the phone 102 to serve as a paymentinstrument is illustrated in FIG. 1 as a payment instrument module 110.The module 110 includes an RFID device 120 for transmitting andreceiving short range radio signals, a security processor 122, and amemory 124. Depending on the application, the RFID device 120 may beeither passive or active. If passive, it relies on the power from theradio signals of a nearby RFID reader. If active, it has a source ofpower, such as the battery of cell phone 102 (seen as an optionalconnection in FIG. 1), and may always be transmitting (or listening for)RFID signals. In other cases, device 120 may be a hybrid RFID devicethat is “asleep” (and draws no power) until either deliberately turnedon (e.g., by pressing a designated key of the cell phone), or upon beingplaced in proximity to an RFID reader, which reader provides sufficientpower through radio signals to “wakeup” the RFID device and thereaftercause it to be powered by its own source (e.g., the cell phone battery).The security processor 122 provides security and other processing fordata transmitted or received by the RFID device, with securityimplemented by programmed code and logic that encrypts/decrypts datausing well known encryption techniques. The processor 122 may also beprogrammed to carry out an activation process, e.g., by receivingaccount data through RFID device 120 and storing that data in memory124, and authenticating the account data by verifying a user PIN, whichwill be described in greater detail below.

The payment instrument module 110 may be interconnected with the phone102 in several different ways. For example, in some embodiments, themodule 110 may be incorporated into a removable telephone cover that isattached and connects to the phone for communications signaling and forpower. In other embodiments, the module 110 may be an RFID card thatplugs into a card connector in phone 102, with the card including asubscriber identity module (SIM) that provides user identification andmemory for storage of programming logic and data. In yet otherembodiments, module 110 may be integrated into the internal circuitry ofphone 102 and share functionality with at least some existing phone cellcomponents.

As illustrated in FIG. 1, the payment instrument module 110 may also beconnected to the MCU or main processor of the cell phone, andaccordingly, in some embodiments, at least some of the functionality foraccomplishing activation could be carried out by processing and memorydevices within the cell phone 102, in addition to or in lieu of theprogrammed functions carried out by processor 122 and memory 124.

Referring to FIG. 2, there is shown a system 200 for activating a cellphone-based payment instrument in accordance with one embodiment of theinvention. The phone 102 is activated as a payment instrument throughthe use of an RFID tag 204 (in this embodiment, a passive RFID device)that is provided to the user and that includes account identifying datapertaining to the user (account number, user identification number,etc.), and a unique PIN that is also provided to the user, such as in aletter 206. In some embodiments it is desired for the RFID tag 204 andletter 206 to be provided separately for security purposes, to reducethe likelihood that an unauthorized person with access to the phone willbe able to use it to steal account information or use it to conductfraudulent transactions. For example, the RFID tag 204 and the letter206 may be mailed separately and at different times. As another example,the RFID tag may be provided in person or through the mail as part of apromotional campaign, with stored data pertaining to a new, conditionalaccount that may be set up for the user only upon acceptance of the RFIDtag (and acceptance of terms and conditions associated with the newaccount). If the RFID tag is accepted (e.g., through a telephone call toa financial institution), the PIN is separately mailed to the user.

A process representing one embodiment for activating the phone in thesystem 200 of FIG. 2 will be described later in conjunction with FIGS.4A and 4 b. Briefly, the RFID device 120 (in this embodiment, either anactive or “hybrid” RFID device) in phone 102 reads the user account datafrom RFID tag 204 when the user “waives” or places the phone at or nearthe RFID tag 204. The user then enters at the phone keyboard the PINprovided in letter 206, and if it correctly matches the PIN associatedwith the account, the user is authenticated and the account data in thecell phone may be used thereafter to conduct transactions. As part ofthe authentication process, the PIN entered by the user is transmittedthrough a wireless telecommunications network 208 (e.g., the networkoperated by a telecommunications carrier providing phone service to theuser) to a wireless host 220, which in turn routes the PIN over anetwork 222 (e.g., a public network such as the internet) to a financialhost 224, where the user's account is maintained, and where a record ofthe PIN assigned to the user is stored (the host 224 includes a PINauthentication server). If the entered PIN is a correct match, thefinancial host 224 returns an acceptance message (through data network222, wireless host 220 and wireless network 208) to the phone, and thepayment instrument is activated.

FIG. 3 illustrates a system 300 for activating a cell phone-basedpayment instrument in accordance with another embodiment of theinvention, where a user having a phone with smart card capability isprovided a magnetic stripe card 302 and a letter 306 with a PIN. Thecard stores (on the magnetic stripe) account identifying information,relating to a new account or an existing account of the user. The usertakes the card 302 and the phone 102 to a conveniently located ATM 310,kiosk or similar self-service terminal. The ATM 310 has a display 312, akeyboard 314, a card reader 316, and an RFID reader 320. The ATMcommunicates through an ATM network 330 to an ATM host 331, and over adata network 332 to a financial host 340 that maintains accountinformation for the user.

A process representing one embodiment for activating the phone in thesystem 300 of FIG. 3 will be described later in conjunction with FIGS.5A and 5B. Briefly, account identifying data is read from the card 302,and the user is instructed (e.g., at display 312) on steps foractivating the payment instrument, including placing the phone near theRFID reader 320 at the ATM, which then senses the presence of the phone.In some embodiments, the card 302 may also store the PIN, so that theuser is authenticated at the ATM immediately after inserting the cardand entering the PIN. The account information on the card is thenencoded into the phone and it is ready for use as a payment instrument.

In other embodiments, the account data on the card 302 is used to accessrecords within financial host 340, including a record of the correct PINfor the user. If the PIN entered at the keyboard 314 of ATM 310 matchesa PIN associated with the account at host 340, an acceptance(authenticating) message is transmitted to the ATM 310 which causes theaccount information read from card 302 to be loaded from reader 320 intomemory 124 of the phone, in order to activate the payment instrumentfeature of the phone. If desired, additional account information fromhost 340 may also be loaded into the phone (e.g., additional accounts,PINs to be used in subsequent transactions, account balances, etc.).

Also, while the disclosed embodiments envision the activation processbeing carried out with the card 302 being issued solely for the purposeof activating the phone, it should be appreciated that a cardholder'sexisting ATM card (having the appropriate account information alreadyencoded) could be used, e.g., in response to the cardholder receiving apromotional letter from the financial institution/card processingentity, informing the cardholders that his/her phone can be activated asa payment instrument and encouraging the cardholder to visit an ATM(with the existing ATM card) in order to activate the phone.

FIGS. 4A and 4B illustrate in greater detail a process for activating apayment instrument using the system 200 described above in conjunctionwith FIG. 2, and so the described process will make reference to FIG. 2as well as FIGS. 4A and 4B. For purposes of describing the process, itis assumed (without limiting the scope of the invention) that theaccount to be associated with the activated presentation instrument is acredit card account, and that the processing of transactions using theaccount, and the issuance and activation of payment instruments, are allmanaged by a card processing entity. It is further assumed that theaccount is an existing account, and that the phone based-paymentinstrument will be activated only for that single account. However, itshould be appreciated that a phone-based payment instrument may be usedin connection with multiple and different kinds of financial accounts,including (but not limited to) credit card accounts, debit cardaccounts, stored value card accounts and the like. Also, a phone-basedpayment instrument may be activated for a new account for which anaccount holder has not previously had a physical card or othertraditional payment instrument. In addition, there may be multiplecardholders (e.g., members of a family) using a single account, andwhile some cardholders may have wireless phones that may be activated asa payment instruments, others using that account may have traditionalcards.

Turning to FIG. 4A, when the process is to be initiated, the cardprocessing entity receives a file with cardholder data that is to beused in activating the payment instrument (step 410). The cardholderdata may include many different kinds of cardholder information (such ascardholder name, address, account number, credit limits and so forth).Only certain kinds of data are required to identify the account forpurposes of activation (e.g., an account ID and/or an account holderID), and that data is extracted from the file in preparation forencoding an RFID tag 204 (step 412). The tag itself is then encoded bythe card processing entity with the account identifying data (step 416).One of many encoding techniques can be used, such as asymmetric orDiffie-Hellman techniques. The RFID tag is then mailed to the cardholder(step 418). A PIN associated with the account is then created andseparately mailed (via letter 206) by the card processing entity to thecardholder (step 422). This PIN may be a one-time PIN used only forpurposes of activating the payment instrument, or if desired, it may bea PIN that will also subsequently be used by the cardholder forconducting transactions after the payment instrument has beenauthenticated. A record of the PIN is retained in the financial host 224by the processing entity for subsequent verification, as will bedescribed shortly. In addition, for added security and as illustrated inFIG. 4A, a delay 421 (e.g., 3 days) may be created between mailing theRFID tag and then mailing the PIN.

After receiving the tag and PIN, the cardholder is ready to complete theactivation process as illustrated in FIG. 4B. The cardholder firstselects (from menu options displayed on the phone 102) a card activationoption (step 432), and the phone display then prompts the cardholder to“waive” the phone over the tag (step 434). When the phone is broughtinto close proximity to the tag (step 436), the RFID device in the phoneretrieves the cardholder data stored in the tag and loads it into thememory 124 of the phone, step 438. The programmed logic within thepayment instrument module 110 does not permit access to the accountdata, however, until the user has been authenticated.

FIG. 6 illustrates a series of programming steps for the communicationsbetween the payment instrument module 110 and the RFID tag 204, in orderfor the payment instrument module 110 to receive the cardholder data(and data/instructions for communicating with the PIN authenticationserver at host 224). Such programming steps may be implemented using acontact-less communications application program interface at both themodule 110 and tag 204 in accordance with NFC or other paymentinstrument communications standards. The programming can use Java-basedcode, implementing, as an example, JINI, a well known standarddistributed networking technology that is Java-based and originallydeveloped by Sun Microsystems, and described at www.jini.org.

The details of the programming steps seen in FIG. 6 will not bedescribed further, since they are evident from such figure. However, itshould be noted that in the case of the embodiment of FIGS. 2, 4A and4B, the RFID tag may provide a service record to the payment instrumentmodule that not only includes the account ID (to be loaded into thephone 102) but also instructions and data (PIN instructions) to enablethe phone to contact the host 224 (e.g., dialing instructions forestablishing a telecommunication path or connection in the wirelessnetwork 202, wireless host 220 and data network 222).

Returning to FIG. 4B, the phone display prompts the cardholder to enterthe PIN at the phone keyboard (step 442). At step 444, the PIN isencrypted (e.g., either by security processor 122 or by the mastercontrol unit within the phone), and sent over the wirelesstelecommunications network 208 to the financial host 224, which includesa PIN authentication server for decrypting and then authenticating thePIN (step 450) by comparing the transmitted PIN to the PIN originallystored as a record at the host 224. A message from the PINauthentication server (within host 224) is sent back to the cell phonethrough network 208 (step 452), and the security processor 122 (at step454) either activates (enables) the cell phone as a payment instrumentif a correct PIN has been entered or rejects the activation request(disables the payment instrument) if the entered PIN is not correct. Ifthe cell phone is activated as a payment instrument, the securityprocessor 122 thereafter permits the account data stored in memory 124to be provided by the RFID device 120 (within the payment instrumentmodule 110) to RFID proximity readers when a transaction is to beconducted.

It should be appreciated that the process illustrated in FIGS. 4A and 4Bmay be implemented (e.g., as to data capture and display of informationat the phone) by software elements or programming logic stored andexecuted in phone 102 (e.g., either in security processor 122 or in thephone's master control unit/processor). Also, the process may beimplemented (e.g., as to PIN authentication) by software elements orprogramming logic stored and executed at the financial host 224.

FIGS. 5A and 5B illustrate in greater detail a process for activating apayment instrument using the system 300 described above in conjunctionwith FIG. 3. However, rather than loading cardholder account identifyingdata into an RFID tag, data is loaded (encoded) onto the magnetic stripeof the card 302 (FIG. 3). Thus, in FIG. 5A, the card processing entityreceives the cardholder data file, prepares it for encoding onto themagnetic stripe, and then uses personalization equipment to encode thecard (steps 502, 504, 506). The card is mailed to the cardholder (step510), and after a three day delay (step 511), the processing entityseparately mails the PIN (step 512). Of course, any length of delay inmailing the PIN could be chosen (as appropriate to suit the needs of theprocessing entity).

When the cardholder is ready to complete activation (FIG. 5B), he/shevisits an ATM (locations could be provided in the letter 306 along withthe PIN). At step 532 the cardholder inserts the card into the cardreader at the ATM 310 and also enters the provided PIN in order toauthenticate himself/herself. It is contemplated that the card 302 hasthe PIN encoded thereon so that authentication occurs immediately atthis point (by comparing the entered PIN with the PIN stored on thecard), although it should be appreciated that the entered PIN could besent to the financial host 340 for such purpose. Although not shown inFIG. 5B, if the cardholder does not enter the correct PIN, thecardholder is not permitted to proceed further in the process.

If authenticated, the cardholder then selects a payment instrumentactivation option provided at the display of the ATM (steps 534, 536).

The ATM display then instructs the cardholder to place the phone nearthe RFID reader 320 at the ATM (step 550). The RFID reader 320 thenencodes the cardholder data into the payment instrument module 110 ofthe cell phone (step 552). After successful encoding, the cell phonedisplays a message to the cardholder that the phone has been activatedand is now ready for use as a payment instrument (step 554)

While a detailed description of presently preferred embodiments of theinvention have been given above, various alternatives, modifications,and equivalents will be apparent to those skilled in the art withoutvarying from the spirit of the invention. For example, while the paymentinstrument is illustrated as a cell phone, any mobile device carried bythe cardholder could be used (e.g., PDA, laptop computer, etc.).Furthermore, the PIN used for authenticating the user need not be anumber, but rather could be a password or any string of characters thatcan be conveniently provided to the user for entry at the keyboard ofthe cell phone or ATM. In fact, the PIN might not even be a string ofcharacters. Rather, among other things, the ATM 310 could be configuredand programmed to use biometric measurements or vectors (signature orfingerprint recognition, retina scans, etc.) or any other form ofpersonal user identification and authentication.

Also, while the illustrated embodiments use RFID device using NFCprotocols and standards, many other forms of wireless signaling could beused to encode the payment instrument (bluetooth, infra red, longerrange RFID signaling, etc.).

Therefore, the above description should not be taken as limiting thescope of the invention, but rather the scope is defined by the appendedclaims.

1. A method for activating a payment instrument in the form of a mobiledevice, wherein during activation an account identifier is loaded intothe mobile device, and wherein the mobile device employstelecommunications signaling and has a payment instrument module thatemploys wireless signaling separate from the telecommunicationssignaling for storing the account identifier and for transmitting theaccount identifier when conducting a transaction, the method comprising:associating a personal identifier with the account identifier andproviding that personal identifier to a user prior to activation of thepayment instrument; placing the mobile device in proximity to anexternal wireless device that is external to the mobile device and thatis not a payment instrument, the external wireless device transmittingwireless signaling representing the account identifier; transmitting theaccount identifier from the external wireless device to the paymentinstrument module; requesting a personal identifier be provided by theuser; and enabling the payment instrument to use the transmitted accountidentifier if the requested personal identifier provided by the usermatches the personal identifier associated with the account identifier.2. The method of claim 1, wherein the personal identifier is requestedfrom the user prior to transmitting the account identifier from theexternal wireless device.
 3. The method of claim 1, wherein the personalidentifier is requested from the user after transmitting the accountidentifier from the external wireless device.
 4. The method of claim 1,wherein the payment instrument module and the external wireless deviceeach include an RFID device for transmitting radio signaling.
 5. Themethod of claim 4, wherein the RFID device in the payment instrumentmodule and in the external wireless device employs near fieldcommunications (NFC).
 6. The method of claim 1, wherein the mobiledevice is a wireless telephone.
 7. The method of claim 6, wherein theexternal wireless device is a passive RFID tag.
 8. The method of claim7, wherein the RFID tag is provided to the user prior to activation. 9.The method of claim 8, wherein the RFID tag is mailed to the user. 10.The method of claim 9, wherein the telephone includes a keypad, andwhere in the user initiates the activation by using a key on the keypad.11. The method of claim 10, wherein the personal identifier associatedwith the account identifier is a personal identification number (PIN)provided to the user separately from the RFID tag.
 12. The method ofclaim 11, wherein the PIN associated with the account identifier ismailed to the user separately from the RFID tag.
 13. The method of claim11, wherein the PIN associated with the account identifier is providedto the user with instructions for activating the payment instrument,wherein the consumer in accordance with such instructions places thewireless device in close proximity to the RFID tag, and wherein the userreceives further instructions on the display of the telephone, includingan instruction to enter the PIN at the keyboard.
 14. The method of claim6, wherein the external wireless device is an active or hybrid RFIDdevice located at a publicly accessible terminal.
 15. The method ofclaim 14, wherein the terminal is a self-service terminal.
 16. Themethod of claim 15, wherein the self-service terminal is an ATM.
 17. Themethod of claim 16, wherein the user receives a card for use inactivating the payment instrument, the card including the accountidentifier.
 18. The method of claim 17, wherein the account identifieris stored on a magnetic stripe on the card.
 19. The method of claim 18,wherein the card is inserted into a card reader at the ATM in order toinitiate the activation of the payment instrument.
 20. The method ofclaim 19, wherein the requested PIN is provided by the user at akeyboard at the ATM.
 21. The method of claim 1, wherein the accountidentifier includes data identifying either the user or an account ofthe user.
 22. A system for activating an payment instrument in the formof an RFID enabled telephone, wherein during activation an accountidentifier is loaded into the telephone, the activated telephoneincluding an RFID device for storing and transmitting the accountidentifier when conducting a transaction, the system including: a PINassociated with the account identifier; an external RFID device fortransmitting the account identifier to the telephone, wherein theexternal RFID device is not a payment instrument; and a programmedprocessor for instructing a user to enter a PIN at a keypad associatedwith either the external device or the telephone, and activating thepayment instrument if the PIN entered at the keypad matches the PINassociated with the account identifier.
 23. The system of claim 22,wherein external RFID device is a passive RFID tag provided to the user,wherein the programmed processor is part of the telephone and instructsthe user to enter a PIN on the keypad of the telephone.
 24. The systemof claim 22, further comprising a financial host storing a record of thePIN associated with the account identifier, wherein the telephonetransmits the user entered PIN to the financial host, and wherein thefinancial host provides an acceptance message to the telephone if thePIN stored at the financial host matches the user entered PIN.
 25. Thesystem of claim 24, wherein the telephone includes a payment instrumentmodule, wherein the payment instrument module comprises the RFID device,a security processor and a memory, and wherein the programmed processoris the security processor.
 26. The system of claim 24, wherein telephonecomprises a master control processor and wherein the programmedprocessor is the master control processor.
 27. The system of claim 22,wherein the external RFID device is an active or hybrid RFID devicelocated at a self-service terminal, wherein the self-service terminalincludes a display and a keypad, and wherein the programmed processorinstructs the user at the display to enter a PIN on the keypad of theself-service terminal.
 28. The system of claim 27, wherein theself-service terminal is an ATM.
 29. The system of claim 28, wherein theuser is provided a card having the account identifier stored thereon,and wherein the user provides the card to a card reader at the ATM inorder to initiate the activation of the payment instrument.
 30. A systemfor activating a payment instrument in the form of a mobile device,wherein an account identifier is provided to the device duringactivation and wherein the mobile device employs telecommunicationssignaling and has a payment instrument module that employs wirelesssignaling separate from the telecommunication signaling for storing andtransmitting the account identifier in order to conduct a transaction,the system comprising: means for associating a personal identifier withthe account identifier and providing that personal identifier to a userprior to activation of the payment instrument; means for transmitting anaccount identifier from a wireless device to the payment instrumentmodule when the mobile device is placed in proximity to wireless device,the wireless device being external to the mobile device and transmittingthe account identifier in the form of wireless signaling, wherein thewireless device is not a payment instrument; means for requesting apersonal identifier be provided by the user; and means for activatingthe payment instrument to use the transmitted account identifier if therequested personal identifier provided by the user matches the personalidentifier associated with the account identifier.
 31. A method foractivating a payment instrument for use by a consumer, with an accountidentifier provided to the payment instrument during activation, whereinthe payment instrument comprises a wireless telecommunications deviceusing telecommunications signaling, and an RFID unit integrated with thewireless device, the RFID unit using short range proximity signalingseparate from the telecommunications signaling and for providing theaccount identifier to an RFID reader in order to conduct transactions,the method comprising: associating a personal identification number(PIN) with an account identifier and providing that PIN to the consumer;placing the wireless device in close proximity to an RFID device that isnot a payment instrument, the RFID device being separate from andexternal to the wireless device when activating the payment instrument,and the RFID device for transmitting the account identifier in the formof wireless signaling for being stored in the integrated RFID unit ofthe wireless device after the payment instrument has been activated;transmitting the account identifier from the external RFID device to theintegrated REID unit; requesting a PIN be provided by the consumer; andactivating the payment instrument to use the transmitted accountidentifier if the requested PIN provided by the consumer matches the PINassociated with the account identifier.